Crypto.com launches institutional trading platform in the U.S.

Several South Korean crypto-only exchanges have long been struggling to keep their business afloat due to their prolonged weak performances. The local news outlet Etoday reported that the persistent underperformance of these local crypto exchanges is mounting pressure on their corporate operation and management, resulting in them shutting down their businesses. The situation hinders them from meeting the requirements set by the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC).  Their inability to generate sufficient revenue, due to faltering token trading volumes, makes complying with the FIU guidelines a daunting task.Photo by Anne Nygård on UnsplashCascading closure of crypto exchanges According to crypto industry insiders, local crypto-only exchanges including Cashierest, Coinbit, Huobi Korea, Probit and Tennten have announced their service closure as early as the second half of last year. On Nov. 6, Cashierest announced it was shutting down its services, with Coinbit following suit in the same month. The cascading closure announcements from crypto exchanges raised concerns about their potential harm on investors.  In an effort to protect crypto investors, the FIU has released a statement that local crypto exchanges are obliged to meet the requirements of the FIU in compliance with the Virtual Asset User Protection Act, despite their closing of services. Furthermore, the regulator said finalizing business closure requires due assessment by the FIU.  "Virtual asset service providers (VASPs) must notify their users of the closure and explain how to reclaim their assets at least one month before the business closing date. They must also support users to withdraw their assets for at least three months before closing," the FIU stated.  Struggling to meet FIU requirements However, some point out that it would be challenging for near-bankrupt crypto exchanges to run a customer service center for more than three months. Some exchanges allow users to deposit and withdraw their assets until their closure, as they would under normal conditions, but charge additional fees afterward. "It is very demanding to operate customer services when we're seeing no actual gains," one exchange official said.  It has been found that some crypto exchanges failed to register a change in their business state with the FIU, which is mandatory in the event of business location or contact changes, under the Financial Transaction Reports Act.  When Etoday reporters visited the offices of some of these crypto exchanges, they were met with empty rooms. One person who is familiar with the matter said, "The exchange has moved its office to another location and is scheduled to resume service in March." 

Cheongju City Targets Cryptocurrency to Recoup Unpaid TaxesSouth Korea’s Cheongju City, located 112km south of Seoul, has announced today that it will tackle local tax delinquents, focusing on the confiscation of their virtual assets.Photo by Karolina Grabowska on PexelsTax debtors owing over KRW 1 millionTo address this challenge, Cheongju City has requested records of cryptocurrency holdings for 8,520 individuals, each owing over KRW 1 million ($747) in local taxes, from seven cryptocurrency exchanges, including Upbit and Bithumb. The city’s plan is to seize and then liquidate these cryptocurrencies to recover the pending tax amounts.This move is facilitated by the amended Act on Reporting and Use of Specified Financial Transaction Information. Under this act, virtual asset service providers (VASPs) must uphold obligations such as confirming the identity of their customers and notifying authorities of dubious transactions. Moreover, the city is keenly monitoring the transfer of virtual assets, focusing particularly on those owned by individuals with unresolved tax dues.Legal groundsIn 2018, the South Korean Supreme Court ruled that virtual assets are recognized as intangible yet legitimate assets, which can be subject to confiscation. It is this ruling that empowers Cheongju City to act against tax arrears by seizing cryptocurrencies.Last year, Cheongju City scrutinized the crypto records of 16,000 individuals and successfully recouped KRW 68 million in taxes from 17 defaulting taxpayers. Cryptocurrencies of those still evading their tax responsibilities remain under confiscation.A city official said that Cheongju will take firm and swift action to collect delinquent payments from those who conceal assets or are repeat offenders.

Korea Information Certificate Authority Dives into NFT Domain with New Platform LaunchKorea Information Certificate Authority (KICA), a South Korean certification service provider, has recently ventured into the NFT domain through its new platform, Web3id.kr.Photo by Choong Deng Xiang on UnsplashNFT domainsNFT domains function as user-friendly addresses that simplify the cumbersome 42-character cryptocurrency wallet address. As part of this new initiative, KICA partnered with the Web3 identity platform, Unstoppable Domains, in February to facilitate the creation of NFT domains specifically for the South Korean market.An official from KICA emphasized the versatility of NFT domains, noting that a single domain can act as a distinctive username across various dApp platforms. To celebrate the debut of Web3id.kr, KICA is conducting a promotional event between August 17 and September 16. At the end of this event, 100 lucky participants, chosen randomly from those who promote Web3id on their social media accounts, will be awarded credits. These credits can then be redeemed at Unstoppable Domains for an NFT domain.From Web2 to Web3KICA, with its 24-year legacy, has been a frontrunner in offering Web2 authentication services such as public key infrastructure (PKI) and biometric solutions, emphasizing its prominence in the Know Your Customer (KYC) authentication sector. The firm is currently ramping up its efforts to stay ahead in the evolving Web3 space. A testament to this is its recent acquisition in August of Digitalzone, a digital certificate solution provider that holds a market share of over 50% in the domestic certificate sector for universities and hospitals.